Health and social care management Essay

INTRODUCTIONThis essay the author go out be able to approximate current systems for managing finances Resources in health and social criminal maintenance settings. Therefore will evaluate how m startary Decisions are made and the need to monitor budgets. This will then enable the author to Evaluate the tinge of pecuniary considerations on an individual using health and Social dish out ser guilts.Furthermore will generate a core understanding of the range of systems available, and How these are apply in the planning and financial charge of health and social Care budgets. The unit gain ground will encourage understanding the importance of supervise budget expenditure and its influence on the provision of health and social Care service.LO.11.1PRINCIPLE OF COSTING AND BUSINES laterality SYTEMSAnalysis of current situation against budget and forecast, classification and coding, job approaching, Contract following, actual personify ascertainment,allocation/ trystCOSTING DEF INITIONCosting it describe as According official terminology the technical schoolnique and use of ascertaining speak to. These valuation systems including main beliefs and system to determine the cost of goods or services. It also thequantity of supply used in replacement of goods or services. The income used can be financed or moneys value, trucking rig variableSemi Fixed CostCost Cost is an amount that has to be paid or given up in order to get something Cost building block The unit cost is the cost incurred by a smart set to produce, store and sell one unit of a opusicular product. Unit costs include all improve costs and all variable costs A cost center is part of an organization that does not produce adopt profit and adds to the cost of Running a company. Examples of cost centers include Cost object Cost object is often a product or department for which cost is accumulated or measured. For example, a product is the cost object for direct materials, direct labor and man ufacturing overhead also the factory aid department is cost object for the cost of the maintenance employees and the maintenance supplies. Cost benefit analysis Is A cost object is a tangible introduce for a product manufactured/service provided, like labor or material. For example a framework manufacturing firm requires someBreak even analysisClassification of cost means, the grouping of costs fit to their common characteristics. The important Cost behavior The way a specific cost reacts to changes in employment levels is called cost behavior. Costs may stay the same or may change proportionatelyVariable Cost / Product CostVariable costs are the Fixed and Variable cost A cost is fixed if, indoors a specified period of time, it does not change in result to changes in the level of activity. A variable cost is one that changes in response to changes in the level of activity, it changes in direct proportion to the volume of activity, that is, doubling the level of activity will d ouble the fundamental variable cost total cost over a period of time for the variable inputs. some(prenominal) increase in the volume of production results in an increase in the variable cost and vice versa. For example, of variable costs is the cost of raw material. Semi-Variable Cost / Semi-Fixed cost These costs are in part fixed and in part variable. For example repair machine fees. Semi-variable cost includes both a fixed and a variable element. For example, a telephone bill contains a fixed standing charge anda variable charge based on the number of units dialled.A semi-fixed cost or stepped cost is one where the cost remains constant for a range of activity then when the activity increases still further the cost will take a step upward. Break-even Analysis is an expected component of most telephone circuit plans, especially for start-up companies. It shows how much revenue you need to cover for both fixed and variable costs and cost benefit analysis are frequently used by health and social care institution to monitor cost and make decision about expenditures. Cost data are very profitable in budget preparation and forecasting for the financial year, the Providers use cost data to manage services and improve operational efficiency. Cost data are also used to support the development of price and currency design for reimbursement purposes A direct cost is especially noticeable to a set cost object.A cost object is a product, procedure, section, or action for which the health validation requirements to assess the cost, much(prenominal) as a medical test, a care appointment, or a health check process. indirect costs cannot be traced to an agreed cost purpose not including resorting to some arbitrary method of assignment. Hand, is at one time convolute in producing revenues, and, if it is managed well, its revenues exceed its cost and it produces a profit.The six principles of costing areStakeholder struggle Stakeholder engagement is the process by which an organisation involves people who may be affected by the decision it makes or can influence the implementation of its decision Materiality is in accounting relates to the significance of transaction, balances and errors contained in financial statements. . Consistency For some costing purposes, a consistent approach is required across or within organizations. Data accuracy, Accurate costing relies on the quality of the underlying input data. Transparency Costing should be transparent and auditableCausality and objectivityImportance of costingCosting help an organisation to manage is company to incur a cost with theexpectation of profit Example A company may cave in a variety of distinct departments,division,or operating groups,each with separate responsibilities and each contri moreovering to the overall success of the company.cost centers,for example,such as accounting,auditing,or inventory check into,have costs,but does not contribute revenues. As a result, they do not produce profits.1.2 The information involve to manage financial resourcesIs to understand the role of planning in the charge of health and social care budgets also the importance of monitoring budget expenditure. Such as transparent and Accurate accounting data, put on the line watchfulness, short and long term Forecasts, audit report.Information1 Need is logical argument costs, people, equipment, finance, buildings, consumable items, administration Income streams trends and external influences, e.g. changes in policy, competitive factors, legal requirements.1.3Regulatory requirementsLegislation and codes of practice, audit, accountability, policies. Systems sources of income, how budgets are set, administration of budgets, cost centers, accountabilities, Audit requirements Information moving in costs people, equipment, finance, buildings, consumable items, administration Income streams trends and external influenceschanges in policy, competitive factors, legal requirements.1 .4 System for managing financeIs a plan, assuring that resources are obtained and used effectively, efficiently in the accomplishment of the organizations goals. Therefore, it focuses on programs and responsibility center and it is a total encompasses of all aspects of a firms operation and usually built around a financial and accounting structure need two types of information for focussing chasten planned date such as, budgets, standards, and projections) andactual data.Budgetary experience systemCost keep back systemFinancial control systemInternal control and auditEnterprise resource management systemIT control systemsImportance of business control systemLO2 ROLE OF PLANNING IN THE wariness OF CARE TECH cipherCare tech one-year reportFinancial ReviewThe company has repeated the good progress of recent years in 2013 The UK market Group has continued to be progressive and has made encouraging progress during the year. The underlying operating profit remains strong at 23.2m compared with 21.7m last year.Transaction on 28 August 2013 to acquire two property portfolio businesses, leading to an annual rent saving Of 4.4m.Income Statement2013 2012m m GrowthRevenue 114.3 114.1 0.2%Gross profit 45.6 45.3administrative expenses (19.2) (20.4) primal EBITDA 26.4 24.9 6.0%Underlying EBITDA margin 23.1%, 21.8%Depreciation (3.1) (3.1)Share-based payment charge (0.1) (0.1)Underlying operating profit 23.2 21.7 6.9% realise financial expenses (5.7) (5.0)Underlying profit before appraise 17.5 16.7Taxation (3.4) (3.4)Effective tax rate 20.0%, 20.0%Underlying profit for the year 14.1 13.3Weighted average number of diluted bundles (millions) 51.3 50.4 Underlying diluted earnings per share 27.43 26.47Full year dividend per share 7.00p 6.50pRevenueRevenue of 114.3m (2012 114.1m) was 0.2% higher than in 2012. In the established bragging(a) Learning Disabilities segment we continued to experience high levels of occupancy2.1 Diverse sources of income2.2 Factors that may i nfluence the assentingibility of financial resources 2.3 Types of budget expenditure2.4 Decisions about expenditureTASK 3 IMPORTANCE OF MONITORING BUDGET EXPENDITURE IN CARE TECH3.1 Managing financial shortfalls3.2 Financial fraud actions3.3 Budget monitoring arrangementsLO.4 make up ones mind OF SYSTEMS AND PROCESSES ON CARE TECH SERVICES 4.1 Information required in making financial decisions distinguishable types of information are needed by decision makers depending upon the stage of operation they are in. The decision involved can be Quantitative or qualitative. Judgments regarding movements in future share prices, likely future dividend payments and management efficiency. Ratios to determine management efficiency. Data to compare the market trend and future estimates.4.2 Relationship between care service delivered and costs and expenditure 4.3 Impact of financial considerations on a service user4.4 upward(a) care services through changes in financial systems and processesBo ttom of Form.Of fraud.4 Understand how systems and processes for managing financial resources influence health and social Care services Financial decisions responsibility for decision making, information available, sources of income, prioritiesThe kind between service delivery, costs and expenditure cost-benefit, pricing policies, purchasing Arrangements. Impact on individuals quality of service, access to service. Recommendations options available, supporting evidence, information to be presented for discussion by financial decision makers. Information about the business environment and external influences Good understanding Of the business cost by health care managers will aid the management of financial resources in health care organisation. The information includes Staff cost (Wages and salaries, pension off cost) Medical equipment and appliances cost (Hoist, Buckets, Buckets, Stretcher, Trolley, Wheelchair) Cost (Outright purchase or submit Operating or finance lease Cost of consumable items (Food, toiletries, Soap, Kerosene, lanternAdministrative cost and Professional fees The revenue (income) receives depend on the service and business engagement of the health organisation which includes normal business activities such as (Adult Learning Disabilities, Mental Health, younker People Residential Services, Foster Care rents and service charges from social housing lettings and leasehold management revenue grant, tax support contribution.The Regulatory bodyThey are alot of regulatory required for satisfying while managing financial resources, but in this essay the author will mention a few such as, Care tech holding PLC in 2013 financial ending. Care Quality Commission,Healthcare Sector Regulator Monitor, NHS Commissioning Board,1. Copernican to monitor to avoid fraud and eororWhat is Importance of costing in HSC1.2Intoduce by defining business control systemsIdentify and explain the different business controls systems in BULLETS (Budgetary control syste m, Cost control system, Financial control system, Internal control and audit, Enterprise resource management system, IT control systems) Conclude with the importance of business control systems.